Synopsys Signs Chip Cooperation Agreement with Amazon Worth Over $1 Billion

en.Wedoany.com Reported - U.S. chip design software company Synopsys has signed a multi-year strategic agreement with Amazon worth more than $1 billion, covering custom chip silicon intellectual property licensing, electronic design automation software, and AI-driven engineering tools. Amazon will serve as a major customer for Synopsys's expanded application-optimized silicon IP business, and the two parties will also conduct joint development around Amazon Web Services infrastructure and custom chips.

The agreement expands Amazon's existing use of silicon IP to application-optimized chip designs and adopts a business model combining license fees and royalties. Synopsys plans to collect corresponding royalties based on the production volume of the relevant chip products. Amazon will also expand its use of Synopsys's electronic design automation tools, simulation and analysis software, and agentic AI technologies, covering chip design, system analysis, and engineering verification.

The two parties will jointly develop AI applications for chip-to-system engineering processes, including deploying AI-driven electronic design automation tools, physics-based simulation solutions, and custom agent capabilities. Amazon's engineering teams plan to use the relevant technologies for the design, analysis, optimization, and verification of complex chips and systems. The agreement involves Amazon's custom Trainium AI training and inference chips and Graviton general-purpose computing processors, while also covering engineering development related to AWS cloud infrastructure.

Synopsys will also collaborate with Amazon to optimize its engineering software for Trainium and Graviton and to adapt multiphysics simulation solutions on the relevant processor platforms. Synopsys engineering teams will use Amazon EC2 compute resources, AWS cloud storage services, and Amazon Bedrock to develop and deploy AI applications and agents, and will use these services in the research and development of silicon IP products and electronic design automation tools.